Thursday lunchtime business bulletin

Aug 21 2008 By Andrew Mernin

The number of new homes being built in England has slumped by 19% during the past year, Government figures showed today.

A total of 33,400 new properties were started during the three months to the end of June, 2% more than during the previous quarter, but 19% down on the same period of 2007, according to Communities and Local Government.

The drop in the number of properties being built by private sector developers was even more severe, with these sliding by 27% year-on-year.

E.ON today became the latest energy firm to hit households with steep hikes in gas and electricity prices.

The company, which has 5.5 million UK customers, blamed soaring wholesale gas costs for its decision to raise gas bills by 26% and electricity prices by 16%.

The hikes will come into force from tomorrow and follow similar moves from rivals British Gas and EDF.

Gift wrap and cracker firm International Greetings today predicted its UK arm will return to profitability within the next two years.

The Hatfield-based company said a new management team and steps to streamline the business, following the loss of around 200 jobs, will help the recovery.

The cost of the turnaround today left International Greetings with bottom-line losses of £12m for the year to March 31, while underlying losses were £3.1m against profits of £17.7m a year earlier.

It said trading conditions since the year end had been in line with expectations, helped by a ``healthy" order book for this Christmas.

IG generates around a third of its sales from gift wrap, with another 11% achieved through cracker sales. In 2005, it brought the Tom Smith cracker business, together with the Royal warrants which have been held by the brand since 1906.

The pound at 10am was US$1.8676 compared to US$1.8589 at the previous close while the euro at 10am was £0.7917  compared to £0.7904 at the previous close.